Boeing Company (the) · NYSE:BA
Boeing Company (the) — The Boeing Company — Q1 2021 Earnings Presentation
14 slides from Boeing Company (the)'s earnings presentation, Apr 28, 2021
Slide 1: First-Quarter 2021 Performance Review
First-Quarter 2021 PERFORMANCE REVIEW David Calhoun President and Chief Executive Officer Greg Smith Executive Vice President, Enterprise Operations Chief Financial Officer April 28, 2021 Copyright © 2021 Boeing. All rights reserved.
Slide 2: Business Update
BUSINESS UPDATE 737 MAX 787 Defense, Space & Global Services • Progress following return to service • Resumed deliveries in March (as of 4/26/2021) following comprehensive reviews Successful 85+ Delivered Space Launch System Since Ungrounding • Final assembly consolidated to Hot Fire Test South Caro
Slide 3: Business Environment
BUSINESS ENVIRONMENT • Stable global demand for our defense, space Commercial operations remain impacted by pandemic and government services Regional dynamics impacted by cases, government policy, and market sizes U.S. daily TSA traffic • COVID-19 significantly impacting demand for air travel Curren
Slide 4: First-Quarter Revenue and Earnings
FIRST-QUARTER REVENUE AND EARNINGS Revenue (Billions) Core CoreEarnings Loss perper Share Share* * $25 $1.00 $20 $0.00 $16.9 $15.2 $15 ($1.00) $10 ($1.53) ($1.70) ($2.00) $5 $0 ($3.00) 2020 Q1 2021 Q1 2020 Q1 2021 Q1 * Non-GAAP measure. Additional information is provided in the company’s earnings pr
Slide 5: Commercial Airplanes
COMMERCIAL AIRPLANES • Financial results reflect lower 787 deliveries and Revenues & Operating Margins higher 737 deliveries • Resumed 787 deliveries in late March $8 $6.2 Revenue (billions) $4.3 $4 • Making progress on safely returning the 737 to service 320% Margin $0 0% • Continue to expect first
Slide 6: Defense, Space & Security
DEFENSE, SPACE & SECURITY • Results reflect year-over-year KC-46A Tanker improvement Revenues & Operating Margins and VC-25B charge • Captured new and follow-on business $9 $7.2 15% Revenue (billions) ⎻ Lots 6 and 7 contracts for 27 KC-46A Tanker aircraft to the U.S. Air Force $6 $6.0 5.6% Margin ⎻
Slide 7: Global Services
GLOBAL SERVICES Revenues & Operating Margins • Commercial services significantly impacted by COVID-19 Revenue Comm’l $8 30% • Outlook for government services remains stable Gov’t $6 $4.6 20% Revenue (billions) • Delivered 50th 737-800 Boeing Converted Freighter $4 $3.7 Margin 15.3% 10% 11.8% • Induc
Slide 8: Cash Flow
CASH FLOW Operating Cash Flow (Billions) $0 • Timing of receipts and expenditures • Higher 737 deliveries ($2) • Lower 787 deliveries ($3.4) ($4) • Lower advance payments ($4.3) • Disciplined cash management ($6) 2020 Q1 2021 Q1 Impacted by timing, higher 737 deliveries, lower 787 deliveries and low
Slide 9: Cash and Debt Balances
CASH AND DEBT BALANCES Cash S&P: BBB- Boeing debt Billions Marketable Securities Billions Moody’s: Baa2 Fitch: BBB- BCC debt $70 $62.0 $62.0 $30 $60 $25.6 $50 $21.9 $7.8 $20 $40 $7.0 $30 $10 $17.8 $20 $14.9 $10 $1.6 $1.6 $0 $0 2020 Q4 2021 Q1 2020 Q4 2021 Q1 Focused on proactively managing liquidity
Slide 10: Summary
SUMMARY • Environment remains dynamic; recovery gaining traction but remains uneven • Monitoring risks and opportunities ⎻ Vaccination pace and case rates ⎻ Remaining 737 MAX regulatory approvals ⎻ Passenger traffic recovery ⎻ U.S.-China relations • 2021 financials hinge on commercial market recover
Slide 11: Copyright © 2021 Boeing. All rights reserved.
Copyright © 2021 Boeing. All rights reserved.
Slide 12: Caution Concerning Forward-Looking Statements
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” a
Slide 13: Non-GAAP Measure Disclosure
NON-GAAP MEASURE DISCLOSURE The Boeing Company and Subsidiaries Reconciliation of Non-GAAP Measures (Unaudited) The table provided below reconciles the non-GAAP financial measure core loss per share with the most directly comparable GAAP financial measure diluted loss per share. See page 6 of the co
Slide 14: 737 MAX - Additional Detail
737 MAX - ADDITIONAL DETAIL • Commercial Airplanes produced at abnormally low production rates in 2020 and expects to continue to do so through 2021. As a result, it expects to incur approximately $5 billion of abnormal production costs on a cumulative basis, which are being expensed as incurred • C